In terms of examples of risk management and corporate governance, UK based banking group Royal Bank of Scotland (RBS) just gives and gives. It’s an unfolding story that continues to grow.
RBS was a big success story in the last decade, showing very fast growth and taking over bigger banks such as Nat West. Its considerable returns appear to have been won, rather predictably, by taking a high level of risk. Previous blog entries have mused on the wisdom of having fired their risk manager.
The banking group was saved from collapse by receiving vast emergency support from the UK government. This was controversial but almost everybody agrees that it was necessary in order to avoid a collapse of the entire banking system. Such a collapse would certainly have made the recession very much worse.
The British public thus became an involuntary shareholder in RBS. Indeed, the UK government now holds a controlling interest in RBS, though it’s been keen to avoid interfering much in the management of the bank.
The image of bankers in the UK at the moment is very tarnished. Most people who have an opinion on senior bank staff have an unfavourable opinion; often seeing them as people who were over-rewarded for taking excessive risks. Many resent having to bail out a bank ruined by unwise risk management.
So it came as a surprise to many when the directors of RBS said that they intended giving bonuses and pay increases to many staff last week. This provoked anger from the government and outrage from the public. The RBS board stated that they would resign if they weren’t allowed to pay the bonuses, as failing to pay people well would result in loss of talented staff.
It has to be questioned whether the board have ever studied stakeholder management and the Mendelow matrix. With 70% of the ordinary shares, the government is a key player; the views of the public must be respected. If that means the synchronised departure of the board of RBS, so be it. Bankers’ salaries and bonuses have been in an inflationary spiral in recent years and some bank must be the first to bring their salaries into the realm of sustainable expenses.
It will be interesting to see if the directors follow through on their threat, back down or are even removed from office by the shareholders (ie the government). Whatever the outcome, their credibility is arguably much tarnished.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-29 19:56:102009-11-29 19:56:10RBS directors threaten to resign
On 12 November 2009, the IASB issued IFRS 9 “Financial Instruments”. This is the first stage of a three stage project that will probably make or break the international reputation of the IASB and its deeply impressive chairman, Sir David Tweedie.
The IASB inherited IAS 32 and IAS 39 from its predecessor, the IASC. IAS 32 and IAS 39 have been rather markedly unloved ever since their introduction. IAS 39 in particular has been criticised for taking fairly complicated financial transactions and making them more complicated still with piecemeal rules for different types of transaction. Although it definitely had its supporters, many people said that the perceived complexity of IAS 39 made it insufficiently understandable by most people to be much real use.
Here at ExP, we believe that IAS 39 has had a slightly unfair press over the years. It does have its faults for sure, but it also has a decent logic at its core. The new IFRS (which will come in three parts over the next year; the next two stages to deal with impairments and the third phase to address hedging rules) has a tough job. Make the rules simpler and it will create loopholes that will be exploited by creative accounting. Close every possible gap and it will result in an accounting standard that puts on weight each year with minor amendments and ends up not understandable.
The attempts at simplification are honourable. We’ll wait to see with interest how well they work. But well done to the IASB for keeping calm in the global financial crisis that many commentators blamed the accountancy profession for making much worse. They were under huge pressure to make change and they appear to have done a good job in the time they had available.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-29 19:07:122009-11-29 19:07:12IFRS 9 released. This is a biggie.
F9 and P4 students should be aware that there are a variety of ways to raise finance (see chapter 4 of our free F9 ExPress notes. One method is by way of a rights issue where a company issues new shares and sells them to existing shareholders. Shareholders are not obliged to buy them but merely have the “right” to buy them. By being given the “right” they have the security of knowing that their shareholding won’t be diluted by shares being issued to other shareholders without first being offered them.
The Lloyds Banking Group has recently announced the UK’s largest ever rights issue and the bank hopes to raise over £13 billion. Press reports state that the main reason behind the rights issue is to raise sufficient funds to avoid the bank having to take part in the government’s banking insurance scheme that was set up after the recent banking troubles in the UK.
This is going to be an interesting one to watch. Lloyds has nearly 3 million shareholders with the majority being private shareholders. Whether or not these shareholders will be willing to take up these rights remains to be seen. They are due to meet to approve it this coming Thursday. In the run up to the exam though I’m sure students will have more to worry about than the outcome of this vote but make sure you’re aware of the various finance raising methods for the exam!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-29 18:43:402009-11-29 18:43:40The Biggest Rights Issue in UK history
A UK director of one of the Big 4 firms pleads guilty to false accounting and fraud, having fraudulently claimed more than £500,000 in expenses in order to finance his wife’s extravagant lifestyle!
The director told police that he had stolen the money because “he did not want her lifestyle to suffer”, being afraid that she would divorce him. Apparently his fraudulent claims were kept below £5,000, meaning that they did not require further authorisation!
A spokesman for the firm said:
“Mr Wetherall’s frauds were detected via our own internal checks and he was dismissed in 2008. A thorough internal investigation was carried out and the case was then handed over to the police.”
The firm also stated that they had changed their internal procedures to prevent such fraud being committed again.
That could be useful I guess when advising client’s on their internal control systems in relation to expense claims!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-29 18:28:032009-11-29 18:28:03Shutting the stable door
A number of provisions from the Companies Act 2006 finally came into force with the final implementation of the Act on 1 October 2009.
However, the Act has been examinable in the F4 Paper for some time, albeit the examiner has expressed some concern about candidates still answering questions with reference to the old legislation.
It is very important therefore to ensure that your study materials are up to date.
As an example, one of the provisions which has just come become effective in practice is the changed allowable uses of the Share Premium Account.
Use of share premium is now restricted, so that only the premium arising on a specific issue of shares is available to write off any expenses or commission associated with that issue.
It is no longer possible to use an existing balance on share premium to write off the costs of a new issue of shares. Neither is it possible to use the share premium account to write off any formation expenses nor to write off costs/provide for premium associated with the issue/redemption of debentures.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-29 17:45:502009-11-29 17:45:50Companies Act 2006 Provisions now in force
In last week’s P3 ExPand video I talked about the recent announcement of the British Airways (BA) merger with the Spanish airline Iberia. Some form of merger had been discussed on and off since they held talks in the summer of 2008 but now it’s looking like there could be some movement on this.
Students of Paper P3 will be aware that Johnson & Scholes argue that when evaluating strategic options, 3 major areas should be considered. Namely, is it suitable, is it acceptable and is it feasible?
The aviation industry is extremely competitive. In the current economic environment it is safe to say that the merger would help both companies in terms of synergies and hence from a suitability point of view it appears to work.
This issue of acceptability would need to be examined in the context of the key stakeholders of the firms. BA is quoted on the London stock exchange so some key stakeholders would be some of the big shareholders. The share price rose by 7% following the announcement so the shareholders appeared to like the news.
The final area is that of feasibility. An important issue from the feasibility point of view is whether it would get regulatory approval from the European Commission.
It’s suitable, it’s acceptable but is it feasible? Let’s wait and see what develops.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-25 19:15:562009-11-25 19:15:56British Airways and Iberia – suitable, acceptable but is it feasible?
British Airways is a big airline and so is Iberia; the flag carrier airline of Spain. Both have experienced considerable difficulties in recent years with the global recession greatly reducing revenues and causing operating losses.
For nearly two years, the two airlines were in discussions about merger, in order to share routes and operating fixed costs. The deal was finally announced in mid November 2009.
The deal is that the two airlines will fuse to create a new business with the working name of Topco. Topco’s capital will be 55% owned by BA’s shareholders and 45% by Iberia’s shareholders. The board will meet in Spain and the CEO of BA will become the CEO of the new business.
For accounting purposes, mergers don’t exist. There is always an acquirer and an acquiree; respectively being the controlling party and the controlled. In this situation, we accountants see it that BA has just done a deal to acquire a new subsidiary, called Iberia. Assuming that Iberia’s shareholders agree to sell. And before that happens, there’s the minor issue of BA’s huge deficit on its defined benefit pension scheme to sort out. IAS 19 produces some deeply unattractive pension liabilities on BA’s statement of financial position.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-22 19:03:022009-11-22 19:03:02BA and Iberia to merge. Except not.
Mergers & Acquisitions (M&A) are an important part of the ACCA P4 syllabus and are also featured in CIMA F3. Those of you that have read our free ExPress notes (/expand/17-p4_advanced_financial_management.html) will be aware that to minimize the risk of failure in the M&A process, acquiring companies should follow a systematic series of steps prior to launching a bid.
1. Clarify strategic reasons for wanting to acquire a company;
2. Draw up a short list of possible takeover targets and select the preferred one;
3. Value the target based on publicly available information and to establish an opening bid;
4. Identify financing options for the transaction
There has been a lot of coverage recently about the attempt by the American food producer Kraft to acquire the British chocolate maker Cadbury. After Kraft announced their intention to acquire Cadbury, another company (Hersey) announced their interest in acquiring Cadbury.
The sums of money involved are significant. Identifying financing options for the acquisition (point 4 above) is therefore going to be key. Kraft’s bid is £9.8bn and press reports indicate that a syndicate of 8 banks has been brought together to finance the approach. The interesting thing though is that it is reported that these 8 banks have been tied into a non-compete agreement. This means that Hersey cannot approach the same banks to finance their approach. As a result it is going to be more difficult for Hersey to raise such amounts of funds.
Whatever happens over the next few weeks this will be an interesting story to follow.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-18 19:28:032009-11-18 19:28:03Anyone got a spare £9.8bn ?
I’m a keen concert goer and enjoy listening to all types of music. In my opinion one of the most pleasing sounds on the ear is that of a piano.
Last month, Kemble and Co., the only remaining large scale UK piano manufacturer stopped production in the UK. Its main shareholder Yamaha transferred operations to Asia.
Whilst there is a debate amongst music aficionados around the world as to whether the sound of instruments is different depending on where it was manufactured, what is interesting from a strategy paper point of view is to think about why Yamaha made the decision to transfer production to Asia. There could well be a question in the exam involving relocating production to another country. So why did Yamaha move the production location?
The reason is clearly due to cost savings due to economies of scale, synergies and utilising spare capacity at some of their other production facilities in Asia.
In 2 years time, Kemble is due to celebrate its 100th birthday. It will still celebrate its birthday but they will be blowing out the candles on the cake in Asia and not the UK.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-15 19:14:522009-11-15 19:14:52It’s music to the ears…
It could be very interesting to see how this one develops!
A UK accountancy group signed off the 2007 accounts of one of their audit client companies, having accepted the valuation of £11 million for one of its assets, a ruby known as “The Gem of Tanzania”.
In the previous year’s accounts, a different firm of accountants had accepted the valuation of the same stone at £300,000.
On the basis of the £11 million valuation the owner of the company, came to the rescue of another company Wrekin Construction. Wrekin Construction was subsequently put into administration earlier this year and the administrators, Ernst & Young, looked to have the ‘ruby’ valued.
It turned out instead of being the world’s most valuable ruby, it was in fact a lump of anyolite worth in the region of £100!
Bet those previous auditors are not sleeping very well right now.
Still it would make a really nice paperweight!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-15 18:25:002009-11-15 18:25:00Was the audit evidence sufficient and appropriate?
General Motors has had a difficult time of late, but things appear to be getting better. Dogged by poor sales in its core US market, it was forced to raise cash by drastic means. This involved agreeing the sale of its European subsidiaries (Opel and Vauxhall). The sale of both to a consortium including Russian banks and Canadian car spares manufacturers. There were legal formalities to complete, but the deal had been announced, largely supported by the German government and looked certain to go through.
At the start of November 2009, it was announced that the board of General Motors had met after a mammoth session and decided not to do the deal to sell its European businesses. The environment for GM had improved more rapidly than expected and a sale no longer looked necessary.
A discontinued activity is defined in IFRS 5 paragraph 32 as a separate business unit that (a)represents a separate major line of business or geographical area of operations,(b)is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations or(c)is a subsidiary acquired exclusively with a view to resale. Vauxhall/Opel sounds like it would fit this definition. It may have been presented as a discontinued activity after being reclassified as held for sale.
It’s unusual for a volte face this big to happen, but it occasionally does. It can produce odd effects in profit, as items are written down to expected sales value and then reclassified at their previous carrying value.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-15 18:13:032009-11-15 18:13:03When is a discontinued activity not a discontinued activity?
As you prepare the themes in the final section of the P4 syllabus guide (“emerging themes”) it might be interesting to know that after a recent trip to Zurich, Switzerland, I asked my friends in the financial industry what was happening these days after all the drama of the bailouts and credit crunches.
They told me that life is getting back to “normal”: the banks are making money again; he said: “the bonuses will be back: borrowing at 0% from the central banks and investing in corporate bonds at 1% and 2% means unlimited, riskless profit… nothing has changed, except that there are fewer banks, making larger profits.”
The French have a saying: “Plus ça change, plus c’est la meme chose” (the more things change, the more they stay the same).
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-11 19:22:232009-11-11 19:22:23Is life getting back to normal?
Royal Bank of Scotland (the UK based banking group) has had its fair share of troubles of late. It made some acquisitions that in retrospect were a clear mistake, such as its purchase of ABN Amro. It failed to manage risk properly, having chosen to fire its risk manager; allegedly for making too much noise about the company taking too many risks. The result of this all was a taxpayer bail out and the enforced departure of its chief executive, Sir Fred Goodwin.
At the time it became obvious that stakeholders were going to require a good degree of blood letting at board level, the bank’s chairman discussed the situation with Sir Fred. As a result, Sir Fred chose to resign, taking his right to an annual pension of £703,000 with him. Had he been fired, his pension rights would have been closer to zero.
Much public comment and anger followed, with virtually all of this aimed at the outgoing CEO. But where were the non-executives? The general duties of non-executive director are:
Remuneration: decide appropriate pay (including pensions) for executive directors in the circumstances.
Internal control and risk management supervision. History shows that this is at least questionable.
Scrutinise the executive directors.
Strategy: contribute to strategy.
Sir Fred Goodwin was entitled to his pension. He later voluntarily chose to waive £200,000 per year, but universal legal opinion is that he would have been entitled to the full amount, because the non-executives allowed him to resign.
Perhaps the press and the public are venting their frustration and anger too much at the executive directors?
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-11 18:50:172009-11-11 18:50:17Royal Bank of Scotland. Where were the non-executives?
The examiner clearly reads a good newspaper on a regular basis and perhaps gets inspiration for future examination questions.
Which newspaper do you read?
In her article ‘Examiner’s approach to Paper P7 (ACCA)’, which appeared in the January 2007 edition of Student Accountant, Lisa Weaver made the following comments:
“A note on current issues – there is likely to be at least one requirement per exam dealing with a current issues topic.”
“Candidates should appreciate that they are expected to read around current issues and not rely on manuals from tuition providers. Good quality newspapers, professional journals, as well as ACCA’s website, provide sources of information on current developments in audit and assurance.”
I recalled the examiner’s comments when reading in the Sunday newspapers about the G20 conference earlier this year. I also recalled that since 2005, candidates sitting for the advanced level auditing paper have had to be familiar with the international anti-money laundering standard and know the implications of its recommendations.
Have you read a good newspaper today yet? Nothing wrong with starting with sports section, my personal preference, but make sure you read the rest of it as well!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-08 19:36:392009-11-08 19:36:39G-20 conference requests public listing of money laundering territories
Those of you who enjoyed the corporate governance parts of ACCA and CIMA may be interested – or excited, or irritated, depending on your point of view! – to know that the US Congress is considering legislation requiring the roles of the Chairman and the Chief Executive Officer to be split between two people.
This is big stuff. Why, you must be thinking, that is precisely the recommendation (read: requirement, hint, hint) of the Combined Code in the UK, and this feature distinguished it from the American Sarbanes Oxley law, which never mentioned such a split.
The reason is cultural: the Americans have always believed that one guy has to be in charge of a company, whether his name is Jack Welsh (General Electric) or, in an earlier age, Harold Geneen (of ATT).
In his book, “The Age of Turbulence” Alan Greenspan endorses this “John Wayne” approach to management. One guy in charge is the way to go. And now, after all the controversy on corporate mismanagement, bailouts and excessive executive remuneration, Congress is looking at … requiring the separation of the Chairman and CEO roles at US companies.
Watch this space…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-04 19:21:022009-11-04 19:21:02Corporate governance across the Atlantic.
A lot has been said about bankers’ bonuses in recent years, with a general view amongst the public that paid to bail out the banking system that they are excessive.
Bankers, unsurprisingly, say that without packages that include large elements of performance-related bonus, the banking industry would not attract the top talent that a complicated business needs. So goes the argument.
So who is right? The answer is simple enough; they both are. Without bonuses, ambitious people are likely to relax, creating inefficiency. As banking is widely seen as the central nervous system of the capitalist system, lethargy in banking would hurt us all.
Yet it seems that many bankers (other than directors of the bank) had bonus systems linked only to short-term profit measures. Had they been paid in a more carefully crafted cocktail of short- and long-term measures that deterred risk taking (eg long-dated share options), then the perceived pattern of excessive risk taking for inadequate return may have been curbed. Perhaps the same discipline that affects the remuneration committee should pervade all remuneration deals.
With ambitious and aggressive people the rule is simple: WYPIWYG (what you PAY is what you get). If bankers were paid to take high risks on derivatives and not held back in pay terms for taking risk, it might be harsh to see it as their fault for doing what their remuneration package incentivised them to do.
Putting together a remuneration package for a banker without bonuses is arguably like making a cosmo cocktail without the vodka.
Speaking of which, I’m writing this on a Friday at 8.00pm. Time for a cocktail of my own. Cheers!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-04 18:49:032009-11-04 18:49:03Bankers’ bonuses. Necessary, a necessary evil or just evil?
Everybody is calling it a merger, but do mergers really exist? And from what date does the combination happen?
Key aspect 1: Determining if IFRS 3 applies and identifying the acquirer.
IFRS 3 applies only to combinations as a result of which an entity (identified as “the acquirer”) obtains “control” of “the acquiree”. Is that the case?
Yes: Xerox is set to acquire 100% of ACS, with ACS expected to “continue to operate as an independent organisation” (branded “ACS, a Xerox Company”) and with Lynn Blodgett (ACS CEO) reporting to Ursula Burns (Xerox CEO).
Key aspect 2: Determining the acquisition date
IFRS 3 requires the combination to be acquisition accounted for at the date when control is obtained. Is the “acquisition date” determinable based on released information?
Not quite: the agreement was signed by the two boards on 28.09.09, but the transaction is “expected to close” by the end of Q1-2010.
Key aspect 3: Recognising and measuring the consideration transferred
IFRS 3 requires consideration transferred to be fair valued at acquisition date, with any transaction costs being expensed and not included as part of the consideration. How does it work in the case?
Xerox is set to pay $18.6 in cash and issue 4.9 shares in exchange of 1 ACS share. Considering share prices on the eve of the deal being announced, such consideration would have amounted to $6.2 billion. However, due to the subsequent fall in Xerox’ share price , the fair value of the agreed consideration went down to $5.5 billion. By the “acquisition date”, the fair value of this consideration may again vary. As to the costs of issuing the new shares raising the $3 billion expected to be needed to finance the deal, IFRS 3 would want them expensed in acquirer’s books and NOT considered as part of the consideration paid (and, therefore, potentially capitalised as goodwill).
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-04 18:09:132009-11-04 18:09:13Xerox Corporation and Affiliated Computer Services (BPO world leader) unveil planned new business combination
Pricing is an important area of ACCA and CIMA. There are a variety of pricing methods discussed in the syllabus including customer based pricing and competition based pricing. Broadly speaking, the former is based on the amount that customers would be willing to pay for benefits whilst the latter involves setting prices based on the prices of competing products.
In the UK, the Toy Retailers Association has just released their list of the top 12 toys that they expect to be most in demand in the UK this coming Christmas.
The interesting thing about the list is that the average price of the toys is just over £26. This compares to an average price of £32 in the Christmas 2007 list. This represents a fall of nearly 20%.
Has this fall been driven by cost savings by the manufacturer on labour or material? Or maybe reductions in transport and storage costs?
My guess is that the toy manufacturers are aware of the recession and the impact on parents buying power (customer based pricing issue). They are also aware that the toy industry is an extremely competitive industry and at the moment their competitors will be offering cheaper products (competition based pricing).
Either way, I’m sure that there won’t be a lot of children debating this issue on Christmas day when they open their presents!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-04 12:06:182009-11-04 12:06:18Thinking of Christmas already?
So what exactly was important about yesterday (31 October 2009)?
Yesterday was an important day for any individuals that submit their income tax returns as a hard copy paper return rather than filing them online.
31 October 2009 was the deadline for submission of an individual’s paper income tax return for 2008/09. To be precise, the paper tax return should have reached HMRC by midnight on Saturday 31 October 2009 to avoid penalties.
If the paper returns are submitted late then there is an automatic penalty of £100 for late submission of returns.
What will be interesting this year however is the impact that the postal strikes have had. For those of you reading this outside of the UK who are not aware, there have been a number of days of industrial action by workers from the Royal Mail and this has resulted in postal delays. HMRC have stated that there will be no extension to the 31 October deadline. If however you can prove that the strike delayed your submission then you may be able to appeal the penalty.
Either way, the key thing to remember for your exam is that the deadline for submission of the paper returns is 31 October.
I’m sure that all F6 students are aware that the deadline for submitting an online return is after the paper return deadline. The deadline for submitting an online return for 2008/09 is 31 January 2010 and one thing is for sure and that is that if the online submission is late you are unlikely to be able to appeal against the late submission penalty on the basis of the postal strike!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2009-11-01 17:53:542009-11-01 17:53:54So, what deadline is on 31 October?
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